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Supporting sustainability and growth in the Mekong Region’s micro, small and medium timber processing enterprises










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    A social and gender analysis of FLEGT: Analyzing opportunities and risks for wood processing and furniture small and medium enterprises (SMEs) in Lao PDR
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Illegal logging and deforestation has become a pervasive issue globally contributing to environmental degradation and climate change in recent decades. Various policy measures have been enacted to mitigate unethical and extractive practices that have jeopardized forest ecosystems and the communities dependent on them, such as the Forest Law Enforcement, Governance and Trade (FLEGT) program. Increasingly, there has been a growing body of research on the implications of FLEGT-related policies on the timber supply chain in VPA negotiating countries. While FLEGT is touted to improve forest governance and provide economic benefits, the commercialization and market formalization of FLEGT processes render dangerous possibilities for small and medium enterprises (SMEs). While recent efforts have assessed how FLEGT can ameliorate timber product output and reduce illegal forest activity, most of this analysis is disaggregated by the size and scale of timber producing operations, and has not considered the social and gendered implications of these policies on various actors along the timber production supply chain. Through a case study of Xayaboury, Lao PDR, our research examined how the VPA process will impact SMEs, and consequently the diverse demographic populations within them. Through focus group discussions and semi-structured interviews with government officials, private sector, civil societies, and SME labourers and owners from the local to the national level, we examined how FLEGT policies has social and gender ramifications in Lao wood processing and furniture SMEs. This research found that small-scale sawmills, women labourers, and local-level women's groups and civil societies are particulalry met with vulnerability due to FLEGT, with few to none safeguarding policies protecting their rights. We argue that policy revisions within the FLEGT and Forestry policies should be amended to protect marginalized communities' rights amidst timber legality and policy changes. Keywords: Gender, Deforestation and forest degradation, Social protection, Sustainable forest management, Illegal trade ID: 3623113
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    Enabling micro, small and medium-sized enterprises to participate in legal timber production and trade
    Transformational changes generated by the FAO-EU FLEGT Programme
    2022
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    Micro, small and medium-sized enterprises (MSMEs) play a critical role in meeting the growing demand for forest products worldwide, with potential to contribute to responsible supply chains that combat illegal logging while promoting economic growth. However, a growing number of countries are adopting demand-side control measures that require proof of legality of forest products. Forest sector MSMEs will require significant support – and changes to the types of support they receive – to fulfil and even take advantage of these new and emerging market requirements and related opportunities. This paper draws from 110 initiatives in 20 countries supported by the FAO-EU Forest Law Enforcement, Governance and Trade (FLEGT) Programme between 2016 and 2022 and seeks to provide examples of how to support forest sector MSMEs cost-effectively and at scale to integrate them into domestic and international legal timber value chains. The initiatives discussed in this paper offer a wealth of experience and knowledge, which can be capitalized upon to boost forest-dependent livelihoods and promote both social equity and sustainability within timber supply chains. Implementing a portfolio of these strategies in a comprehensive support package generate “transformational changes” that help realize the potential of MSMEs to move past traditional business-as-usual modes of operation towards sustainable growth and more inclusive, resilient economies.
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    Small-scale timber plantations for rural household livelihoods: Case study of Acacia timber production and commercialization system in central Vietnam
    XV World Forestry Congress, 2-6 May 2022
    2022
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    Rural poverty alleviation implies economic development at local levels to which forests contribute to different extents. Smallholder-managed timber plantations form the backbone of wood supply in Vietnam. Of the planted tree species, Acacia (Acacia auriculiformis x Acacia mangium) hybrid is one of the most preferred by timber growers. Yet, the contribution of these timber plantations to rural livelihoods is currently unknown.
    This study explores the impacts of Acacia timber production and trade on rural livelihoods in Thua Thien Hue province, where the tree species has been cultivated widely since approximately 20 years. 300 household heads in Nam Dong and Phu Loc district were interviewed, following a stratified random sampling approach. We employed a combination of descriptive and inferential statistics to examine the contribution of Acacia hybrid timber income to household economies. In addition, three Foster-Greer-Thorbecke poverty measures and the Gini decomposition method were used to evaluate the effects of income from timber plantations on poverty and income inequality. The findings were validated in group discussions, key informant interviews and direct observations.
    The results demonstrated that Acacia hybrid timber plantations accounted for 33-56% of total annual household income. However, more wealthy households benefitted more from Acacia timber income especially in case of a well-developed market. Livelihood diversification using timber production notably reduced all three poverty indices in both districts. Given its highest share of total Gini and positive marginal effect on total Gini, Acacia timber income was the main contributor to the overall income inequality. While this income source reduced the Gini coefficient by 0.7% in Nam Dong, it increased Gini coefficient by 18% in Phu Loc district. Recommendations refer to improving the contribution of Acacia hybrid timber plantations to rural livelihoods. Keywords: Human health and well-being, Sustainable forest management, Landscape management, Governance, Deforestation and forest degradation ID: 3477875

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